A SYSTEM OF ACCOUNTING FOR COTTON GINNERIES. 17 



drawals column from the footing of the bank deposits column. The 

 balance thus forwarded must be deducted from the total of the 

 column before posting is made to the general ledger at the end of the 

 month. 



General ledger. — This column is used for all items to be posted to the 

 debit of the accounts in the general ledger, and for which no special 

 columns have been provided. Posting should be made in detail from 

 the column to the proper accounts in the general ledger. 



Ginning ledger (accounts receivable). — In the ginning ledger column 

 are entered all charges for ginning as they are recorded in the ginning 

 register and all charges for sales of material on account. All detail 

 postings are made from the register to the ginning ledger and only 

 the total charges are posted once a month or at the end of the season 

 into the accounts receivable control account on the general ledger. 



Notes payable. — In this column are entered payments on written 

 obligations, such as notes, mortgages, drafts, etc. 



Bagging and ties purchases. — In this column are entered amounts 

 paid for all purchases of bagging and ties which are to be used in 

 the ginning operations. 



Cotton seed purchased. — In this column are entered all amounts paid 

 for cotton seed purchased. 



Operating expense columns. — In these columns are entered pay- 

 ments for the various charges indicated by the column caption. 



Other columns are operated in a similar manner to those which 

 have been mentioned. 



CREDIT COLUMNS. 



Cash.— The cash column carries all items of cash of whatever 

 nature which are disbursed by the organization, either for petty 

 expenditures or to be deposited in the bank. It should be a strict 

 rule that all cash receipts are to be deposited in the bank when it is 

 possible to do so. It is sometimes found inexpedient to adhere to 

 this rule, and for that reason a cash column on the credit side of the 

 journal has been provided. Where a petty cash fund is in use, the 

 credit cash column need not be used. 



General and ginning ledgers. — These columns serve the same pur- 

 poses on the credit side as were explained on the debit side, the 

 postings in this instance being made to the credit side of the ledger 

 accounts. 



Notes payable. — In this column are entered loans and renewals 

 for which written obligations have been given. 



Cottonseed sales, custom ginning income. — The entries into these 

 and other columns not specifically mentioned are items which fall 

 under the respective captions, and are similar in operations to those 

 described. 



Blank columns are provided for accounts having frequent entries. 

 55231°— 21— Bull. 985 3 



